GrubHub will merge with Europe’s Just Eat Takeaway.com to create one of the world’s largest online food delivery marketplaces, the companies announced on Wednesday. The all-stock merger deal values GrubHub shares at $75.15 a piece, for a total equity value of $7.3 billion. Just Eat Takeaway.com already owns the leading Canadian brand SkipTheDishes, creating a food delivery powerhouse in the North American marketplace.

“We share a focus on a hybrid model that places extra value on volume at independent restaurants, driving profitable growth,” GrubHub CEO Matt Maloney said in a statement. “Supported by Just Eat Takeaway.com, we intend to accelerate our mission to be the fastest, best and most rewarding way to order food from your favorite local restaurants in North America and around the world.”

The merger, which would combine two of the top food deliver services in the U.S. and Europe, comes after Grubhub’s talks with Uber fell through amid concerns over antitrust scrutiny. Though both parties had agreed on a price ratio, the companies remained concerned about likely antitrust pressure and could not come to an agreement on how Uber would support Grubhub through the regulatory process. Uber shares were down slightly after hours following the announcement.

“Like ridesharing, the food delivery industry will need consolidation in order to reach its full potential for consumers and restaurants,” an Uber spokesperson said in a statement. “That doesn’t mean we are interested in doing any deal, at any price, with any player.”

Grubhub’s deal with Just Eat is unlikely to garner as much regulatory attention as its possible combination with Uber. The proposed Uber-Grubhub deal would have combined two of the three largest food delivery companies in the U.S.

The companies said they expect the deal to close in the first quarter of 2021. Grubhub CEO Matt Maloney will join Just Eat’s management board and lead the combined business in North America. Two Grubhub directors will join Just Eat’s supervisory board, according to the release.

Todd Horwitz Chief Strategist BubbaTrading.com
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